Calculate your exact take-home pay after income tax, National Insurance and student loan. Updated for 2026/27 HMRC tax rates.
✅ Last verified: June 2026 — Based on HMRC 2026/27 tax rates and dividend tax rates effective April 2026
⚡ QUICK ANSWER
On a salary of £40,000/year in the UK (2026-27), your take-home pay is approximately £30,840/year (£2,570/month). Income tax: £5,486 at 20%, National Insurance: £3,674 at 8%. Personal allowance: £12,570. Higher rate (40%) kicks in above £50,270.
🇬🇧 UK Take-Home Pay & Dividend Tax Calculator 2026/27
Gross Salary
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Take-Home Pay
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Income Tax
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National Insurance
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Student Loan
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Effective Tax Rate
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Gross Salary-
Pension Contribution-
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Taxable Income-
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National Insurance (Class 1)-
Student Loan Repayment-
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Dividend Tax Due
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Net Dividend Income
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Dividend Allowance
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Effective Rate
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Total Income (Salary + Dividends)-
Dividend Allowance (tax-free)-
Taxable Dividends-
Basic Rate Dividends (10.75%)-
Higher Rate Dividends (35.75%)-
Additional Rate Dividends (39.35%)-
Total Dividend Tax-
Net Dividend Received-
📊 UK Take-Home Pay Examples 2026/27
Based on standard 1257L tax code, no student loan, no pension. Source: HMRC 2026/27.
Gross Salary
Income Tax
Nat. Insurance
Take-Home/yr
Take-Home/mo
£20,000
£1,486
£1,034
£17,480
£1,457
£30,000
£3,486
£2,234
£24,280
£2,023
£40,000
£5,486
£3,074
£31,440
£2,620
£50,000
£7,486
£3,674
£38,840
£3,237
💡 UK Salary Tips 2026/27
Personal Allowance — £12,570
Everyone gets a tax-free personal allowance of £12,570 in 2026/27. This means you pay no income tax on the first £12,570 of earnings. The allowance is reduced by £1 for every £2 earned above £100,000.
Salary Sacrifice for Pension
Contributing to a pension via salary sacrifice reduces both your income tax AND National Insurance contributions. A basic rate taxpayer saves £32 for every £100 in pension via salary sacrifice — better than a standard pension contribution.
Marriage Allowance
If your spouse or civil partner earns less than £12,570 and you are a basic rate taxpayer, you can transfer £1,260 of their personal allowance to you, saving up to £252 in tax per year.
Dividend Tax Rates Increased April 2026
From 6 April 2026 (announced in the Autumn 2025 Budget), dividend tax rates rose by 2 percentage points: basic rate from 8.75% to 10.75%, and higher rate from 33.75% to 35.75%. The additional rate stays at 39.35% and the £500 tax-free dividend allowance is unchanged. Use the Dividend Tax tab above to calculate your exact liability.
UK Salary FAQs 2026/27
What are the UK income tax rates for 2026/27?
UK income tax rates for 2026/27: Personal Allowance £12,570 (0%), Basic Rate 20% on £12,571–£50,270, Higher Rate 40% on £50,271–£125,140, Additional Rate 45% above £125,140. Scottish taxpayers have different rates.
How much National Insurance do I pay in 2026?
Employees pay Class 1 NI at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. The lower earnings limit means no NI on the first £12,570.
What is the take-home pay on £40,000 in the UK?
On a £40,000 gross salary in 2026/27, your approximate take-home pay is around £30,500-£31,500 per year (about £2,540-£2,620 per month) after income tax and NI. Use the calculator for your exact figure.
What is the UK student loan repayment threshold in 2026?
Plan 1: repay 9% above £24,990. Plan 2: repay 9% above £27,295. Plan 4 (Scotland): repay 9% above £31,395. Plan 5: repay 9% above £25,000. All plans have no upper repayment threshold.
What are the UK dividend tax rates for 2026/27?
From 6 April 2026, UK dividend tax rates are: 0% on the first £500 (dividend allowance), 10.75% for basic rate taxpayers (income £12,571–£50,270), 35.75% for higher rate taxpayers (£50,271–£125,140), and 39.35% for additional rate taxpayers (above £125,140). The basic and higher rates increased by 2 percentage points from 2025/26 following the Autumn 2025 Budget.
How much tax do I pay on £20,000 in dividends in 2026/27?
If you have no other income, the first £12,570 of dividends uses your personal allowance tax-free, the next £500 uses your dividend allowance tax-free, and the remaining £6,930 is taxed at the basic rate of 10.75%, giving a tax bill of approximately £745. Use the Dividend Tax calculator above for your exact figure based on your full income.